Rio Tinto’s bauxite production in Q1 2020 records a YoY growth of 8%, while aluminium output takes a dip

An Anglo-Australian multinational and the world's second-largest metals and mining corporations, Rio Tinto, has released the operational results of the first quarter of 2020, mentioning that its bauxite production has increased year-on-year by about 8 per cent to stand at 13.8 million tonnes. But when compared to the previous quarter, the output has been found decreased by 9 per cent.

The growth in the year-on-year production of Rio’s bauxite followed the successful ramp-up of its Amrun mine in 2019 and the 7 per cent increase in third party shipments to 9.5 million tonnes in the first quarter.

The company’s aluminium production, on the other hand, has dipped in the first quarter by 2 per cent year-on-year to 0.8 million tonnes, with ISAL operating at 85% capacity in line with our value over volume strategy. Quarter-on-Quarter, Rio’s aluminium production has remained flat in Q1 2020.

In respect to the operational upgrade for the COVID19 containment, the company has reportedly implemented several health and hygiene measures to ensure the wellbeing of the employees and communities.

Rio Tinto Chief Executive J-S Jacques said, “In these uncertain and unprecedented times we continue to deliver products to our customers with our first priority to protect the health and safety of all our employees and communities. We are focused on maintaining a business as usual approach and have taken extensive measures to ensure we can do so safely.”

He added, “All of our assets continue to operate and we achieved a very robust production performance in the first quarter. Our world-class portfolio and strong balance sheet serve us well in all market conditions and are particularly valuable in the current volatile environment. Our resilience and value over volume strategy mean we can continue to invest in our business, and support our communities and host governments.”

Until the first quarter, all major projects progressed well, but are now being affected by Covid-19 and the government imposed restrictions on the movement of goods and people for virus containment, said Rio Tinto.

Capital expenditure is now likely to be $5 to $6 billion in 2020, down from the previous guidance of $7 billion, partly due to the COVID19 outbreak and partly due to the favourable currency impact from the strong US dollar.

However, Rio Tinto is continuing to work with customers to fulfil orders and meet their requirements while complying with government directives. Our customer order books remain healthy, with our commercial teams focusing on business continuity and customer support.